Motherson Sumi To Acquire 80% Stake In Germany's Peguform
Motherson Sumi Systems Ltd will buy 80% stake in Germany's Peguform Group from Cross Industries AG. Austria-based Cross Industries will continue to hold the balance 20% in Peguform.
Motherson Sumi will buy the stake through a special purpose vehicle in which Motherson Sumi will hold 51% stake and group firm Samvardhana Motherson Finance Ltd would hold the balance.
The transaction will also include acquisition of a 50% stake in Wethje Carbon Composite, which is part of Cross Industries.
The deal is expected to close in 2-3 months subject to regulatory approvals and will be funded through debt
Peguform makes and distributes bumper systems, plastic components for vehicle exteriors, cockpits, dashboards and vehicle interior trims. Peguform's 2010 sales were 1.37 Bn euros and a reported EBIDTA of 66.87 Mn euros.
Transaction Reference: Press Release
Established in 1959, Peguform has more than 7,000 employees at its 17 factories and five module centers in Germany, Portugal, Spain, Brazil, Mexico, China and Slovakia.
Peguform's major customers include Volkswagen Group, BMW, Porsche, PSA Peugeot Citroën, Renault-Nissan, Daimler and GM.
Cross Industries AG is an Austrian industrial holding company with a strategic and operative focus on the automotive sector.
Motherson Sumi, the flagship company of the Samvardhana Motherson Group, was floated along with two Japanese partners Sumitomo Wiring Systems and Sojitz Corporation. In 2009, MSSL's promoters bought out the entire stake of 9.6% of its Japanese joint venture partner Sojitz Corporation for Rs 206 Cr.
Motherson Sumi produces car mirrors, wiring harnesses, modules and plastic parts for the automotive industry.
In 2009, Motherson Sumi acquired UK-based auto rearview mirror maker company Visiocorp for Rs.176 Cr (around $31.6 Mn).
Germany has been the preferred destination for acquisitions in the auto components space for Indian companies. Ruia Group has made three acquisitions in Germany - Acument GmH & Co KG this year, Gumasol Rubber Tec GmBH in 2010 and Draftex Automotive GmbH in 2009, while Dynamatic Technologies Ltd recently acquired Eisenwerke Erla GmbH and in 2008 Sintex Industries acquired 90% in Geiger Technik GmbH, for 35 Mn euros.
Ruia Group has also made other acquisitions in the auto components space. This year, apart from Acument GmH, it also acquired France's SEALYNX Automotive and Turkey's Standard Profil AS and in 2008 acquired Schlegel Automotive Europe Ltd.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 13/07/11 | Peguform Group - Motherson Sumi Systems | M&A | Motherson Sumi Systems Limited | 193.04 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 03/05/12 | Private Equity | Monetary Authority of Singapore | Samvardhana Motherson Finance Limited | 41.72 | Completed |
| 26/04/12 | Private Equity | International Finance Corporation | ATC Tires Private Limited | 160.00 | Planned |
| 26/04/12 | Private Equity | Commercial Engineers & Body Builders Co. Limited | - | Completed | |
| 25/04/12 | IPO / Offerings | Samvardhana Motherson Finance Limited | 315.88 | Called Off |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Motherson Sumi Systems Limited | Samvardhana Motherson Finance Limited Sumitomo Wiring Systems Limited |
2nd Floor,F-7,Block B-1, Mohan Co-operative Industrial Estate, Mathura Road |
Exide Industries Limited Bosch Limited Minda Industries Limited Ashish Automotives Private Limited Sonkem India Private Limited Rane Brake Lining Limited |
www.motherson.com |
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